Molina Healthcare Inc. of Long Beach, posting its results for just the second time as a public company, said its third-quarter earnings declined 3.4% from a year earlier despite membership increases.
The managed-care firm, which specializes in serving people on Medicaid, said it recorded a profit of $11.7 million, or 46 cents a share, for the quarter. That was down from $12.1 million, or 59 cents, a year earlier.
Revenue rose 14% to $196.7 million from $172.1 million.
Molina said its enrollment increased 11% in the latest quarter to 530,000 members from 478,000 the previous year, mostly because of its efforts to expand in Michigan, Utah and Washington. Nearly 53% of the company's enrollment is in California.
Despite the decline in earnings, J. Mario Molina, president and chief executive, called the results "strong" and said they reflected the company's high-quality services and marketing efforts.
Molina went public July 2, raising about $120 million. On the first day of trading, the stock rose 14% from its offer price of $17.50 a share.
The company released its earnings after the stock markets closed. Molina shares were off 3 cents at $25.80 on the New York Stock Exchange.